IS GOLD BREAKING OUT OR ABOUT TO GO BUST?

 

Spot gold prices are jumping as I write, currently at $1387 (prices touched $1397.70 shortly ago). Where prices open tomorrow (9:30 AM) will be enlightening. Maintaining $1387 – $1397 through Friday would support a significant breakout. But if prices slip overnight and open tomorrow below $1362, I’d suspect a top and pile on the shorts.

 

-GLD- Prices would have to blast through 128.50 – 129.50 on big-volume to support a breakout. Otherwise, gold bulls can look for another buying opportunity this fall near 114 before prices take off.

I think we will find out within the next 48-hours if gold is breaking out or topping. Where and how prices close Friday is key.